A recent green economy assessment report (UNEP, 2014) on Kenya reveals that the transition to a green economy can deliver important benefits, such as long-term economic growth, a cleaner environment and high productivity. The report also indicates that green fiscal policies, which include a range of tools such as taxes, subsidies, user charges and fees, and public expenditure, can be useful in supporting this transition.
Following that study, this working paper provides an overview of the current status of green fiscal policy in Kenya, key challenges and opportunities for further green fiscal policy reforms. The paper reviews government revenues and expenditures and analyses the potential for green fiscal policy (GFP) in selected key sectors of the economy, including forestry, energy, mining and oil, water, fisheries, waste management and wildlife.